26 USC 358 - Basis to distributees

Editorial Notes

Amendments

2002—Subsec. (h)(1)(A). Puspan. L. 107–147 amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which is assumed in exchange for such property, and”.

2000—Subsec. (h). Puspan. L. 106–554 added subsec. (h).

1999—Subsec. (d)(1). Puspan. L. 106–36 struck out “or acquired from the taxpayer property subject to a liability” after “liability of the taxpayer” and “or acquisition (in the amount of the liability)” after “such assumption”.

1997—Subsec. (g). Puspan. L. 105–34 added subsec. (g).

1990—Subsec. (a). Puspan. L. 101–508, § 11801(c)(8)(G)(i), substituted “or 361” for “361, 371(span), or 374”.

Subsec. (span)(3). Puspan. L. 101–508, § 11801(c)(8)(G)(ii), struck out par. (3) “Certain exchanges involving ConRail” which read as follows: “To the extent provided in regulations prescribed by the Secretary in the case of an exchange to which section 354(d) (or so much of section 356 as relates to section 354(d)) or section 374(c) applies, for purposes of allocating basis under paragraph (1), stock of the Consolidated Rail Corporation and the certificate of value of the United States Railway Association which relates to such stock shall, so long as they are held by the same person, be treated as one property.”

1988—Subsec. (f). Puspan. L. 100–647 added subsec. (f).

1978—Subsec. (d). Puspan. L. 95–600 designated existing provisions as par. (1) and added par. (2).

1976—Subsec. (a). Puspan. L. 94–253, § 1(span)(1), substituted “371(span), or 374” for “or 371(span)”.

Subsec. (span)(1), (3). Puspan. L. 94–455 struck out “or his delegate” after “Secretary”.

Puspan. L. 94–253, § 1(span)(2), added par. (3).

1968—Subsec. (e). Puspan. L. 90–621 substituted exchange of stock and securities for issuance of stock or securities as the transaction involved and inserted parenthetical provisions making reference to stock or securities of a corporation which is in control of the acquiring corporation.

1958—Subsec. (a)(1)(A)(iii). Puspan. L. 85–866 added cl. (iii).

Statutory Notes and Related Subsidiaries

Effective Date of 2002 Amendment

Amendment by Puspan. L. 107–147 effective as if included in the provisions of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by Puspan. L. 106–554], to which such amendment relates, see section 412(e) of Puspan. L. 107–147, set out as a note under section 151 of this title.

Effective Date of 2000 Amendment

Puspan. L. 106–554, § 1(a)(7) [title III, § 309(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–638, provided that:

“(1)In general.—The amendments made by this section [amending this section and section 357 of this title] shall apply to assumptions of liability after October 18, 1999.

“(2)Rules.—The rules prescribed under subsection (c) [see Application of Comparable Rules to Partnerships and S Corporations note below] shall apply to assumptions of liability after October 18, 1999, or such later date as may be prescribed in such rules.”

Effective Date of 1999 Amendment

Amendment by Puspan. L. 106–36 applicable to transfers after Oct. 18, 1998, see section 3001(e) of Puspan. L. 106–36, set out as a note under section 351 of this title.

Effective Date of 1997 Amendment

Amendment by Puspan. L. 105–34 applicable, with certain exceptions, to distributions after Apr. 16, 1997, pursuant to a plan (or series of related transactions) which involves an acquisition described in section 355(e)(2)(A)(ii) of this title occurring after such date, see section 1012(d) of Puspan. L. 105–34, set out as a note under section 351 of this title.

Effective Date of 1988 Amendment

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1978 Amendment

Amendment by Puspan. L. 95–600 applicable to transfers occurring on or after Nov. 6, 1978, see section 365(c) of Puspan. L. 95–600, set out as a note under section 357 of this title.

Effective Date of 1976 Amendment

Amendment by Puspan. L. 94–253 applicable to taxable years ending after Mar. 31, 1976, see section 2 of Puspan. L. 94–253, set out as a note under section 354 of this title.

Effective Date of 1968 Amendment

Puspan. L. 90–621, § 2(c), Oct. 22, 1968, 82 Stat. 1311, provided that: “The amendments made by subsections (a) and (span) [amending this section and section 362 of this title] shall apply only in respect of plans of reorganization adopted after the date of the enactment of this Act [Oct. 22, 1968].”

Effective Date of 1958 Amendment

Puspan. L. 85–866, § 21(span), Sept. 2, 1958, 72 Stat. 1620, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendment made by subsection (a) [amending this section] shall apply as provided in section 393 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] as if the clause (iii) added by such amendment had been included in such Code at the time of its enactment [Aug. 16, 1954].”

Savings Provision

For provisions that nothing in amendment by Puspan. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(span) of Puspan. L. 101–508, set out as a note under section 45K of this title.

Abolition of United States Railway Association and Transfer of Functions

United States Railway Association abolished effective Apr. 1, 1987, all powers, duties, rights, and obligations of Association relating to Consolidated Rail Corporation under Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et seq.) transferred to Secretary of Transportation on Jan. 1, 1987, and any securities of Corporation held by Association transferred to Secretary of Transportation on Oct. 21, 1986, see section 1341 of Title 45, Railroads.

Application of Comparable Rules to Partnerships and S Corporations

Puspan. L. 106–554, § 1(a)(7) [title III, § 309(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–638, provided that: “The Secretary of the Treasury or his delegate—

“(1) shall prescribe rules which provide appropriate adjustments under subchapter K of chapter 1 of the Internal Revenue Code of 1986 to prevent the acceleration or duplication of losses through the assumption of (or transfer of assets subject to) liabilities described in section 358(h)(3) of such Code (as added by subsection (a)) in transactions involving partnerships, and

“(2) may prescribe rules which provide appropriate adjustments under subchapter S of chapter 1 of such Code in transactions described in paragraph (1) involving S corporations rather than partnerships.”